Xcel Energy asking for yet another rate increase

Xcel Energy is asking state regulators to approve a natural gas rate increase that would raise the average residential bill by about seven dollars and fifty-nine cents a month.

The utility is seeking a one-hundred-ninety-million-dollar increase in revenue. In filings submitted to the Colorado Public Utilities Commission, Xcel said the higher rates would pay for investments it has made and for rising costs tied to its natural gas system.

The request comes just weeks after Xcel asked regulators to approve a separate electric rate increase of more than three-hundred-fifty-five million dollars. If approved, the average residential electric bill would rise nearly ten percent.

The Public Utilities Commission will hold hearings and take testimony and public comment on both requests.

Xcel Energy–Colorado President Robert Kenney said the company’s recent investments include inspecting nearly six-hundred miles of aging gas transmission lines, rebuilding infrastructure, and upgrading more than two dozen regulator stations and other facilities. The proposal includes a ten-point-seven-five percent rate of return on equity, which is the profit regulators allow the utility to earn.

Kenney acknowledged customers are facing challenging economic times and said Xcel has expanded its energy assistance programs, including investing ten million dollars of company funds to help customers struggling to pay their bills.

The Utility Consumer Advocate, which represents the public before regulators, has criticized the proposed increases. Deputy Director Joseph Pereira said the gas increase is significant, especially given it comes alongside the electric rate request. The Deputy Director also questioned Xcel’s continued investment in natural gas infrastructure as the state works toward a goal of net-zero carbon emissions by 2050.

If approved, the gas rate increase would take effect in October. The average residential bill would rise to about seventy-four dollars a month. The electric rate increase, if approved, would begin in September.